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Saturday, May 17, 2008

I would like to share some little, little tips that I know on Options Trading from time to time. This is what I've learnt through my trading experience or from other traders and gurus. I hope these tips would be useful to you, be it you are a beginner or season trader. Please do share some of your tips here so that we can make it as interesting as possible.

I used to trade with OptionXpress. The trading interface is the most user friendly among the three but the charting can be quite slow and having errors sometimes. The commission is the most expensive ($14.95 per 10 contracts) compared to the other two.

Interactive Brokers has the cheapest commission rate, $1.00 per contract or $0.70 per contract for trading two contracts and above. There will be a charge of $10 for subscribing to its online market data if your commission spent is less than $30 per month. The drawback for this broker is that their interface and services are not as good as the other two.

Think or Swim, it has the nicest interface and services. The reply is fast via email or live chat. The staffs are nice and friendly. As for the charting, they have their own as well as Prophet Chart which are equally nice. I prefer Prophet as I'm used to it since I use the same charting when I was with OptionsXpress. The trading software has many functions for trading and analyzing trades. It might seems a bit complicated at first but once you get use to it there shouldn't be any problem. The commission rate can be bargained, just ask for a lower rate from their various trading packages. Who knows you might be the lucky one to get the lowest rate!

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